A key meeting of the Chamber of Oil Marketing Companies (COMAC) could determine the future of Ghana’s fuel price floor, as industry leaders reopen talks on a policy introduced to curb price undercutting.
Speaking on Joy News’ PM Express on Tuesday, COMAC Executive Secretary Dr Riverson Oppong said the price floor was not imposed by regulators alone but was driven by the industry itself.
“The floor price we see today is something the industry itself took to the regulator, even before I came to become the industry coordinator,” he said.
He explained that when he assumed office two years ago, the policy was already under review. At the time, the floor price for petrol stood at GH¢9.80.
“When I came last two years, in April, we were at the reviewing part of the whole floor price. So that is GH¢9.80,” he said.
The price floor was introduced to stop aggressive price competition among oil marketing companies, which industry players said was damaging the market.
Dr Oppong said any change to the policy cannot be made unilaterally.
“Removing it is not just a public decision. It is a regulator decision and an industry decision,” he said.
He disclosed that COMAC has begun internal consultations ahead of a crucial board meeting.
“We’ve started now with our board subcommittee engagement. On Thursday, there’s a board meeting, and I believe the public will hear what our position is,” he said.
He stressed that the talks are about reviewing the policy, not automatically scrapping it.
Dr Oppong said discussions begin immediately.
“The meeting starts tomorrow, and I believe that this is part of the discussion we’re going to have,” he added.
Addressing tensions within the industry, he said COMAC’s structures reflect broad representation.
“Our committee members are made up of the companies that are today fighting Star Oil and other OMCs,” he said.
He noted that major players sit on the board.
“We have the Star CEO, and also the GOIL CEO, there,” he said.
Dr Oppong said the price floor was introduced because some companies were selling fuel at unsustainable prices.
“The whole issue was the undercutting of price, where we had certain OMCs selling below prices that were uncalled for,” he said.
He added that those prices made no commercial sense.
“We knew in the industry it was never close to any break-even point,” he said.
The outcome of the COMAC board meeting is expected to shape the next phase of fuel pricing, with implications for consumers and the downstream petroleum sector.
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